Construction Guarantee (CG) saw construction compensation the corporation provides surpass 30 billion won during the first half of this year, CG said on July 4. The figure represents a record for the company.
Construction compensation CG extended during the first half of each year has been on the rise through this year, since CG logged 20.6 billion won in the first half of 2018.
CG has built a solid growth foundation in the insurance market related to construction. The corporation is evaluated to have maintained strong growth every year amid a fierce competition with major nonlife insurers.
Despite CG, being a relative late comer in the construction insurance market, the corporation has logged solid business performances based on a strong financial structure and competitive guarantee rates.
In particular, under the stewardship of President Park Young-bin, CG accelerated efforts to reinvest business and management, such as the introduction of a relationship management (RM).
Entering the second half of the year, actualizing synergetic effects of reinventing business regimes will likely spur the growth momentum of the guarantee business.
CG’s services protect member companies from a variety of site dangers. The specific needs of each company are reflected in their particular needs, from the product development stage to integrating all work processes, ranging from business scrutiny to compensation.
CG officials said CG will raise company members’ financial benefits by developing diverse products and offering cheaper guarantee rates and swift compensation services.
It will do its utmost to help members devote themselves to conducting management activities in a stable fashion, it said.
CG, Celebrating 60th Anniversary Next Year, Pursues Innovation
Construction Guarantee (CG) is devoting itself to pursuing dramatic changes ahead of celebrating the 60th anniversary of the establishment of CG. CG’s buzzword for this year is innovation.
It was first time that the president of CG was appointed in a public contest in 59 years since its establishment. The current president, Park Young-bin, was elected in the fierce completion.
President Park, only two weeks in office, conducted the biggest-ever reorganization and completed the formation of executives and established a blue-print for a new take-off ahead of the 60th anniversary next year.
The reorganization involved the introduction of the Financial Business Team and the Finance and Planning Division (CFO) and the expanded Asset Management Division in charge of securities, real estate and alternative investments.
The heads of the two visions were appointed for the first time in its history while another division chief was promoted from among second-grade officials.
An institutional innovation task force team, designed to overhaul inefficient regulations and regimes and an organizational innovation task force team, designed to pursue sustainable development are in place.
CG’s second buzzword is profitability. CG plans to concentrate its capabilities on expanding profitability in the asset management business, which has been sluggish with passive investment mode, on top of the conventional business areas such as guarantee, loans and compensations.
The corporation plans to ramp up profitability in the guarantee and compensation sectors. It plans to prioritize in ramping up good client management and marketing activities. To this end, CG has reorganized branches.
CG has strategies to expand profitability through aggressive marketing activities based on price competitive and the development of competitive products in the compensation business and guarantee business sectors.
CG has decided to meet company members’ financial needs and raise economic benefits by strengthening its market and economic roles on top of the conventional mutual aid financial service.
To this end, CG plans to renew overall meters, such as regulation and institutional regimes, and raise its credit evaluation and loan scrutiny capabilities.
In particular, the Asset Management Division, expanded in the latest reorganization, will hire expertise manpower, including the chief investor officer (CIO) and nurture inside experts to make some portion of outside commissions to disperse risks.
CG plans to make the most of the strengths as a construction-oriented financial institution and raise the portion of alternative investments such as real estate to overcome fluctuation of the financial market.
A CG official said the most important thing is stable growth through principles of check and balance, and inside risk management will be reinforced through the expanding of scrutiny function.
The CFO of the Financial Planning Division will manage assets and ensure the safety of investment risks by counterbalancing the Financing Business Team, operating business departments, the official said.
